Ask YC: Did Facebook F*** Microsoft?
"Big point: Microsoft won't be serving Social Ads. This will be controlled by Facebook. Zuckerberg clarifies: "Microsoft is the exclusive third-party provider of IAB standard ads. This is not going to go through Microsoft. We think it is a different kind of advertising.""
The only reason I could see why Microsoft would purchase so little of shares in Facebook for so much money (i.e. the 15b valuation, buying 1.6% for 240M$) was the advertising exclusivity they got in their contract. But now Facebook doesn't want to give them all the ads????
If the Social Ads will be as efficient and as successful as Facebook is hoping then how would there be room for any IAB standard ads? wouldn't all companies just want to do the social ad instead?
(I know Microsoft was also trying to get in and try to cut Google out, but the point was to get in and take advantage not to get in, get Google out and give all the power to Facebook)